Post: India pledges to review G7 proposal to limit Russian oil prices

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Indian Minister Puri pledges to review G7 proposal to limit Russian oil prices

MOSCOW, September 6 – RIA Novosti. India will carefully consider whether it will support the G7’s proposal to impose a price cap on Russian oil. declaration Indian Oil and Gas Minister Hardeep Singh Puri during the Gastech 2022 expo in Milan.

When asked if he would join India’s proposal to limit Russian oil prices, Puri told CNBC, “There is a lot of talk due to many factors… What will this proposal mean? We will look at it very carefully.”

He added that it is still unclear which countries will be included in the proposed price cap and what implications this might have for the markets.

Reducing India’s Russian oil imports

Earlier, analysts at Vortexa said that India has reduced its oil imports from Russia in the past two months, but could increase it due to EU restrictions on Russian oil.

According to the company, India purchased 738,024 barrels of Russian crude in August, down 18% from July and down 24.5% from June. This was noted against the background of the overall decline in oil imports to India – falling to 4,049,167 bpd in August, which is 13% lower than July and 15% lower than in June.

“I definitely see more Russian oil going to India in the coming months as the EU’s ban on oil imports from Russia approaches,” Serena Huang, a Vortexa analyst, told the Economic Times.

Oil Price Ceiling

The heads of finance ministers of the G7 countries (Great Britain, Germany, Italy, Canada, the United States, France and Japan) agreed on Friday to put a “price cap” on Russian oil.

According to Deputy Prime Minister Alexander Novak, Moscow will not supply raw materials to states that support this measure. As the presidential press secretary Dmitry Peskov explained, if price restrictions are introduced, the fuel will go only to countries operating under market conditions.

Gas Price Ceiling

How transmits Referring to an internal document of the European Union, Bloomberg agency, at the technical meeting on September 7, EU countries will also discuss the proposal to introduce a ceiling on the price of Russian gas.

Later, the Financial Times reported that the European Commission was discussing a plan to limit wholesale gas prices, which included two options: setting a price cap for gas imported from Russia and introducing a system of different levels of price caps for European countries. their energy consumption. A measure for the creation of the so-called “red” and “green” zones in the EU is being discussed. Thus, prices will remain limited in the “red” regions, but may be high in the “green” regions so they can help supply the “red” regions in the event of a shortage.

In addition, the European Commission is discussing the possibility of imposing a price cap on gas imported from Russia throughout the European Union, or creating a “sole buyer” of Russian gas that can discuss the price level.

Source: Ria

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